Dick Morris Accuses Obama Of Creating New Housing Bubble

Republican strategist Dick Morris is accusing President Obama of setting the groundwork for a new housing bubble via the Federal Housing Administration (FHA).

MoneyNews.com cites a video on the DickMorris.com website featuring Morris accusing the president's housing finance policies of setting the economy toward another meltdown.

‘You'd think Obama would learn from the history of the collapse of the housing market in 2007-09 and how it took the whole global economy with it,’ says Morris. ‘But he's doing exactly the same thing [that] caused [it]. And it's going to happen in the next one, two, or three years. There is going to be a huge crash again because of a housing bubble.’

Morris claims that the FHA is serving to inflate a new housing bubble through its underwriting standards, stating that anyone seeking an FHA-backed mortgage requiring a 3.5% down payment needs a credit score of 600.

‘If, God forbid, you're below 600, you can still get a mortgage, but you have to put 10 percent down,’ Morris states. ‘These are precisely the policies and misguided idealism that led to the crash that has thrown the world into recession.

‘They're doing the same thing [that] led to the housing bubble,’ Morris adds. ‘They're giving mortgages all over the place.’